KCA Deutag said March 5 it has entered into an agreement with the shareholders of Dalma Energy LLC to combine their respective businesses through the acquisition by KCAD of Dalma’s Omani and Saudi Arabian businesses.

Consideration for the acquisition, based upon an enterprise valuation of $660 million, will consist of $100 million of cash and shares to be issued to Dalma’s shareholders valued at $220 million.

KCAD had revenue of over $1.16 billion and EBITDA of $219 to $224 million in the year ending of December 2017. The Dalma business had revenue of $3122 million and EBITDA of $110 million in the year ending December 2017.

Upon completion, the KCAD group as enlarged by the Dalma Business will continue to operate under the KCA Deutag brand name and will have approximately 9,700 employees.

“The acquisition of Dalma’s operations in Saudi Arabia and Oman will significantly strengthen our foothold in the Middle East, and provide us with a stronger platform to develop and grow our business in what is an exceptionally attractive region,” Norrie McKay, KCAD’s CEO, said.

“Dalma’s operations are an excellent strategic fit, not only consolidating our position in Oman as the country’s leading owner and operator of onshore drilling rigs but also enabling us to offer our operational expertise in the substantial Saudi Arabian onshore drilling market, which has been a key target for KCAD.”